The strategic implications of black empowerment in South Africa: a case study of boundary choice and client preferences in a small firm
Stellenbosch Working Paper Series No. WP07/2010Publication date: 2010
Author(s):
This paper initiates a research programme on the strategic implications of BEE, through an in-depth case study of a small South African services firm. The case involves a meter-reading firm that has adapted flexible boundaries within the value chain to accommodate heterogeneous client preferences shaped by BEE policy. While the case is very specific, the analysis highlights three core features of BEE policy as a strategic variable. Firstly, the case supports an assertion that BEE policy is a demand-based intervention, altering client preferences regarding the value chain. Secondly, the case confirms that BEE is a market-based policy that may be implemented in a variety of ways by different clients. Thirdly, the case shows that firms do not passively respond to BEE policy but explore strategic responses that balance BEE requirements with other organizational goals.
JEL Classification:L22, M14
Keywords:Boundaries, Vertical integration, Demand-side; Black empowerment
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1 March 2021Even with the release of data showing a record high unemployment rate in 2020Q4, it turned out to be a fairly good week for the SA economy. Daily new COVID-19 infections remained well contained, while the second batch of 80 000 J&J vaccines arrived (albeit controversially with the grounded SAA being the carrier). In addition, relative to the October...
Read the full issue